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August 2016 Investor Presentation – Bonavista Energy Corp

Bonavista Energy Corp · Aug 28, 2016 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. August 2016 Investor Presentation – Bonavista Energy Corp – slide 1
    INVESTOR PRESENTATION AUGUST 2016 1
  2. August 2016 Investor Presentation – Bonavista Energy Corp – slide 2
    IDENTITY This is Bonavista Our leadership team is experienced: We are aligned with our average tenure of 13 years shareholders: 8% insider ownership We always strive to be We have a focused more efficient: asset base: 21%…
  3. August 2016 Investor Presentation – Bonavista Energy Corp – slide 3
    IDENTITY Q2 ACCOMPLISHMENTS Equity financing of 34 million shares 110MM debt repayment Operating costs of 5.58/boe 21% improvement* Cash costs of 9.51/boe* 16% improvement* Capital expenditures of 23 million 38% of FFO**…
  4. August 2016 Investor Presentation – Bonavista Energy Corp – slide 4
    IDENTITY CORE OPERATING AREAS Focused: Deep Basin Q2 2016 18,845 boe/d production 91% natural gas 3.60/boe operating costs Key plays: Wilrich, Bluesky, Falher, Notikewin West Central Q2 2016 43,213 boe/d production 59%…
  5. August 2016 Investor Presentation – Bonavista Energy Corp – slide 5
    2016 STRATEGY 8
  6. August 2016 Investor Presentation – Bonavista Energy Corp – slide 6
    2016 PRIORITIES 1. Improve financial flexibility 2. Demonstrate sustainability 3. Protect funds from operations 4. Enhance efficiencies 9
  7. August 2016 Investor Presentation – Bonavista Energy Corp – slide 7
    2016 PRIORITIES IMPROVING FINANCIAL FLEXIBILITY Guidance: 2016 Budget Capital expenditures ( millions): Exploration and development 150 Acquisitions and dispositions (55) (50) Total 95 100 Production (boe/d) ** 67,500 Funds…
  8. August 2016 Investor Presentation – Bonavista Energy Corp – slide 8
    2016 PRIORITIES IMPROVING FINANCIAL FLEXIBILITY Includes 3,300 boe/d of shut in production as at June 30 69,000 255 * 3.4 67,500 * 2016 Funds from Operations ( millions) 227 2.7 * Debt to EBITDA at YE2016 2016…
  9. August 2016 Investor Presentation – Bonavista Energy Corp – slide 9
    2016 STRATEGIES - PROTECTED Natural gas hedged at CDN 3.14/gj AECO for remainder of 2016: 300 4.00 Hedged Volumes (thousands gjs/d) 250 3.50 200 3.00 CDN/gj 150 2.50 100 2.00 50 1.50 68% 83% 0 1.00 Q1-16…
  10. August 2016 Investor Presentation – Bonavista Energy Corp – slide 10
    2016 STRATEGIES ENHANCED EFFICIENCIES Competitive cost structure F&D costs: 24.00 Finding and Development Costs (/boe)* 22.00 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 2012 2013 2014 2015 Bonavista Peer…
  11. August 2016 Investor Presentation – Bonavista Energy Corp – slide 11
    2016 STRATEGIES ENHANCED EFFICIENCIES Pace of improvement operating costs: 10% 5% 0% Operating Costs * (% change) 9% -5% -10% -15% 35% -20% -25% -30% 2012: Bonavista 9.07/boe -35% Peer Group Average…
  12. August 2016 Investor Presentation – Bonavista Energy Corp – slide 12
    2016 PRIORITIES ENHANCED EFFICIENCIES Pace of improvement cost of adding production: 10% Production Addition Costs* (% change) 0% -10% -20% 54% 33% -30% -40% -50% 2012: -60% Bonavista 32,500/boed Peer Group…
  13. August 2016 Investor Presentation – Bonavista Energy Corp – slide 13
    ASSET QUALITY 16
  14. August 2016 Investor Presentation – Bonavista Energy Corp – slide 14
    ASSET QUALITY KEY PLAYS Many years of high quality development: Locations (gross) in our key play inventory*: 1,146 Locations Glauconite Other Key Plays WEST CENTRAL 385 locations 327 locations Hoadley Glauconite 270 Strachan…
  15. August 2016 Investor Presentation – Bonavista Energy Corp – slide 15
    CAPITAL ALLOCATION Base E&D spending of 152MM: Wells Expenditures* % of Value Gross Net ( millions) Expenditures Spirit River: 19 19.0 71 54 Wilrich 12 12.0 56 43 Falher/Notikewin 7 7.0 15 11 Glauconite: 20 17.0 53 40 Hoadley 18…
  16. August 2016 Investor Presentation – Bonavista Energy Corp – slide 16
    SPIRIT RIVER Growing our presence in the Wilrich, Falher and Notikewin trends: Production 2016E Value* Capital of 132 million 100% 73,418 77,211 79,287 67,500 90% boe/d boe/d boe/d boe/d 80% Production Weighting (%) 70%…
  17. August 2016 Investor Presentation – Bonavista Energy Corp – slide 17
    ANSELL WILRICH Continually more efficient: Average production per well Average drilling and completion costs per well Down 1,200 6,000 1,000 5,000 17%* 800 4,000 1H 2016 boe/d 000s 600 3,000 400 Up 2,000 1H…
  18. August 2016 Investor Presentation – Bonavista Energy Corp – slide 18
    ANSELL WILRICH Improving efficiencies through experience and technology: 5,000 Completion 11% 4,000 down /horizontal meter 3,000 19% 2,000 Drilling down 1,000 17,400 10,500 boe/d boe/d 0 H1 2015 H2…
  19. August 2016 Investor Presentation – Bonavista Energy Corp – slide 19
    ANSELL WILRICH Controlling our infrastructure: 4.25 4.05 4.00 3.75 Operating Costs (/boe) 3.50 38% 3.25 3.00 2.75 60 mmcf/d compression and processing facility commissioned in Q3 2015 2.50 2.50 Forecasting to…
  20. August 2016 Investor Presentation – Bonavista Energy Corp – slide 20
    MORNINGSIDE FALHER Continually more efficient: Average production per well Average drilling and completion costs per well Down 3,000 5,000 4,500 4,000 2,500 26% 3,500 2,000 Raw gas (mcf/d) 3,000 000s 1H 2016…
  21. August 2016 Investor Presentation – Bonavista Energy Corp – slide 21
    MORNINGSIDE FALHER Improving efficiencies through capital cost reductions: 2,000 26% Complete 1,500 down /horizontal meter 1,000 21% Drilling down 500 8,500 5,600 boe/d boe/d 0 H1 2015 H1 2016 *…
  22. August 2016 Investor Presentation – Bonavista Energy Corp – slide 22
    MORNINGSIDE FALHER Sustainable development through 2016: Production Value* capital expenditures Production growth of 2% while spending 70% of net operating 4,000 income** 3,500 3,000 Production (boe/d) 2,500 2016E…
  23. August 2016 Investor Presentation – Bonavista Energy Corp – slide 23
    GLAUCONITE Solid production base established: Production 2016E Value* Capital of 132 million 100% 73,418 77,211 79,287 67,500 90% boe/d boe/d boe/d boe/d 80% Production Weighting (%) 70% 60% 50% 40% 40% 35% 31% 30%…
  24. August 2016 Investor Presentation – Bonavista Energy Corp – slide 24
    HOADLEY GLAUCONITE Continually more efficient: Average production per well Average drilling and completion costs per well 3,000 3,000 Down 2,500 2,500 20% 2,000 2,000 Raw gas (mcf/d) 1H 2016 000s 1,500 1,500 1H 2015…
  25. August 2016 Investor Presentation – Bonavista Energy Corp – slide 25
    HOADLEY GLAUCONITE Continually more efficient: 2,000 23% Completion 1,500 down /horizontal meter 1,000 18% Drilling down 500 15,300 9,800 boe/d boe/d 0 H1 2015 H2 2016 28 * Costs per meter include…
  26. August 2016 Investor Presentation – Bonavista Energy Corp – slide 26
    GLAUCONITE Reliable and predictable production: Production Value* capital expenditures Minimal production change with spending only 35% of net 30,000 operating income** 25,000 Production (boe/d) 20,000 2016E 15,000…
  27. August 2016 Investor Presentation – Bonavista Energy Corp – slide 27
    KEY PLAY RETURNS Sensitivities: 2017 strip price at August 2, 2016 80% All key plays compete 70% equally for capital in 60% current price environment Internal Rate of Return 50% 40% 30% 20% Morningside Falher - 1…
  28. August 2016 Investor Presentation – Bonavista Energy Corp – slide 28
    SUMMARY 2016 Priorities: Improve financial flexibility Debt repayment of approximately 295 million Demonstrate sustainability Total payout ratio of 44% with minimal production decline Protect funds from operations Hedged 80%…
  29. August 2016 Investor Presentation – Bonavista Energy Corp – slide 29
    APPENDIX 32
  30. August 2016 Investor Presentation – Bonavista Energy Corp – slide 30
    IDENTITY SOCIALLY RESPONSIBLE Developing our assets responsibly: In the past four years, we have decreased our total flared and vented natural gas volumes by 44% Converting our corporate vehicles to propane, reducing our…
  31. August 2016 Investor Presentation – Bonavista Energy Corp – slide 31
    2016 STRATEGIES FINANCIAL FLEXIBILITY Total & senior debt*: Senior Notes (CDN) 20 Unutilized Bank Capacity Bank credit facility - 600 million 480 11 banks in credit facility Unsecured, financial covenants Matures September…
  32. August 2016 Investor Presentation – Bonavista Energy Corp – slide 32
    2016 STRATEGIES FINANCIAL FLEXIBILITY Senior debt maturities: 300 Senior notes average interest rate 4.1% Bank debt interest rate 3.2% Remaining term approximately 5.5 years at 3.9% 250 200 ( millions) 150 100 50…
  33. August 2016 Investor Presentation – Bonavista Energy Corp – slide 33
    2016 STRATEGIES FINANCIAL FLEXIBILITY Total and senior debt / EBITDA: Year ended December 31, 2016E ( millions) Revenues, net of royalties 389 * Realized gains on financial instrument contracts 140 529 Expenses: Operating…
  34. August 2016 Investor Presentation – Bonavista Energy Corp – slide 34
    2016 STRATEGIES - PROTECTED Oil hedged at CDN 76 WTI for the remainder of 2016: 4 80.00 Hedged Volumes (mbbls/d) 3 60.00 CDN/bbl 2 40.00 1 20.00 100% 100% 0 0.00 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17…
  35. August 2016 Investor Presentation – Bonavista Energy Corp – slide 35
    2016 STRATEGIES - PROTECTED Propane hedged at 42% of WTI for 2016: 3,000 60% 2,500 50% Hedged Volumes (bbls/d) 2,000 40% % of WTI 1,500 30% 1,000 20% 500 10% 20% 35% 0 0% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17…
  36. August 2016 Investor Presentation – Bonavista Energy Corp – slide 36
    2016 SECOND QUARTER PERFORMANCE Three months ended June 30, Six months ended June 30, Financial: 2016 2015 % change 2016 2015 % change ( millions except per share amounts) Production revenues 90,908 150,110 (39)% 195,386 314,397 (38)%…
  37. August 2016 Investor Presentation – Bonavista Energy Corp – slide 37
    2015 RESERVES F&D costs of 7.26/boe: Natural Before- Natural 10%NPV Total 2.4 billion Oil Gas Total Tax Gas Liquids 10%NPV Proved (Mbbls) (MMcf) (Mbbls) (Mboe) (Millions) Probable Developed 35% Producing Category:…
  38. August 2016 Investor Presentation – Bonavista Energy Corp – slide 38
    COMMODITY AND CURRENCY VOLATILITY 2016 Commodity composition By Volume By Value 3% 9% 5% 7% Natural Gas 14% 4% Ethane Propane 6% Butane 5% 16% Pentane 61% 69% Oil 41

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